Coal news and updates

 

Volume growth in cement increased by 12¬18 per cent in the March 2016 quarter compared with a drop of 4.7 per cent in the corresponding quarter of the previous fiscal, according to various analyst estimates. This is the first double¬digit growth in six quarters reflecting a pickup in construction activity apart from benefits of lower input costs. The cost required to produce per tonne of cement fell by 8.6 per cent to Rs 3,517 year¬on¬year due to lower prices of pet coke and coal, which are major raw materials needed to manufacture cement. Medium and small companies reported average volume growth of 18 per cent in the March quarter while large companies showed 16 per cent growth. Most mid¬sized cement companies uch as Orient Cement, JK Lakshmi Cement, and Dalmia Bharat earned high volume growth on the strength of capacity expansion. For instance, in the past one year, Orient Cement's capacity improved to 8 million tonnes (MT) from 5 MT . This improved the prospects of a better volume growth for the company. Dalmia Bharat recorded highest volume growth of close to 25 per cent since the company increased stake in OCL India through its subsidiary Dalmia Cement. In the coming quarters, large companies such as UltraTech Cement and Shree Cement , which hold 25 per cent of total industry's capacity, will be benefited by reviving demand given their wider geographical presence and ability to dictate prices.

Source: Economic Times